Aeropostale Boosts Guidance

Aeropostale Inc. (ARO - Snapshot Report) – a specialty retailer of casual apparel and accessories, targeting young women, men and children – recently raised its earnings guidance for the third quarter of 2009.

The company now expects EPS in the range of 78 cents to 80 cents, compared to 63 cents in the year-earlier quarter. The Zacks Consensus Estimate of 81 cents lies at the high-end of the company's updated guidance range. Earlier, management had forecast EPS in the range of 76 cents to 78 cents.

Better-than-expected monthly results for the four-week period ended Aug. 29 prompted management to boost its third-quarter earnings guidance.

The company's comparable-store sales for the month of August increased 9%, compared to 13% in the same period last year. Year-to-date comps climbed 11%, essentially flat with the year-ago period.

August sales jumped 16% to $241.7 million from $207.9 million in the same month last year. Year-to-date sales climbed 20% to $1,103 million from $921.4 million in the same period last year.

Aeropostale currently operates 935 stores and principally focuses on young women and men in the age bracket of 14 years to 17 years, as well as kids in the age group of 7 years to 12 years.

Read the full analyst report on ARO